Turkey witnesses another surge in house sales in June, fueled by persistent demand
In the first half of 2024, Turkey's real estate market has witnessed a significant surge in house sales, with over 691,893 units sold, marking a 26.9% increase compared to the same period last year.
The provinces of Istanbul, Ankara, and Izmir have been the top performers, with Istanbul leading the way with 17,656 units sold. Ankara followed closely with 9,428 units, and Izmir had 5,987 units. Interestingly, the provinces with the least sales were Ardahan, Bayburt, and Hakkari.
Second-hand sales also saw a notable jump, increasing by 37.6% to 74,154 units. New home sales also climbed by 32% year-on-year to 33,569 units. Mortgage-financed sales surged even more, with a 112.6% increase in June alone.
The residential property price index (RPPI) showed mixed trends across the country. While it increased in many provinces, including Erzurum, Erzincan, Bayburt, Ağrı, Ardahan, Kars, Iğdır, Bingöl, Elazığ, Malatya, Tunceli, Van, Bitlis, Hakkari, Muş, and Ankara, it saw the lowest increase in Aydın, Denizli, Muğla, Antalya, Burdur, and Isparta. On a monthly basis, the RPPI ticked up 2% in June.
Sales to foreign buyers also rose, increasing by 8.7% compared to last year. However, cumulative sales to foreigners in the January-June period decreased by 10.6% compared to the same period of the previous year, reaching 9,354 units.
The growth in house sales can be attributed to various factors. Economic stability and lower interest rates or government-backed mortgages often boost sales. Government initiatives like public mortgage support and government vouchers for retrofitting costs have been crucial in encouraging housing sales, making housing more affordable.
The luxury property segment has seen growth, particularly in coastal areas and waterfront developments, driven by citizenship-motivated buyers and foreign investment. However, the overall trend indicates a decrease in foreign involvement in the broader market.
The increase in mortgage sales suggests a strong domestic demand for housing, likely driven by government incentives and economic factors. The southwestern and southern provinces saw the lowest annual change, while the regions that saw the highest rise were mostly the eastern and southeastern provinces.
Without specific data for the first half of 2024, it is challenging to quantify the exact increase in house sales compared to 2023. However, the market trends suggest that factors like government support, mid-market demand, and economic conditions are key drivers of growth in the Turkish real estate sector.
- The provinces of Istanbul and Ankara, both being top performers in Turkey's real estate market, have significantly contributed to the surging house sales in the first half of 2024, with Istanbul selling 17,656 units and Ankara following closely behind with 9,428 units.
- With the striking increase in mortgage-financed sales, especially in June, the finance sector will likely witness a significant boost in the second half of 2024, given the strong domestic demand for housing evident in the current market trends.
- As foreign investors show a decreasing trend in the broader Turkish real estate market, there is a growing emphasis on the local housing-market, particularly in the mid-market segment, which has been a significant driver of growth in the real-estate sector, as per the market trends observed in the first half of 2024.
